Escalation of Commitment: Differences between U.S. and Chinese Hospitality Managers

WooSik Choi, Manisha Singal

Research output: Contribution to journalArticlepeer-review

Abstract

Escalation of commitment (EoC) in large and risky projects is a critical component of managerial decision-making behavior that can affect both the growth and profitability of firms. In this study, we propose and test how EoC may differ based on antecedents like differences in national culture, a manager’s ethical orientation, and agency conditions. Our empirical analyses examine whether and how the hospitality industry managers in China and in the Unites States differ in their level of EoC. The results show differential effects of the various cultural dimensions on EoC for the American and Chinese hospitality managers. In our study, the managers’ view of business ethics and agency conditions were found to be influential factors for the American managers, some of the cultural dimensions for Chinese managers. These findings point to the need for developing and refining conceptual and theoretical models that can be applicable to Asian managers to understand decision-making based on cultu
Original languageEnglish
JournalKorean Journal of Hospitality Administration
StatePublished - Jul 2018

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